John Deere layoffs in Midwest due to production relocation to Mexico: What it means for workers and the industry

Money | June 29, 2024, 1:13 p.m.

John Deere, the leading seller of tractors and crop harvesters, is facing layoffs affecting around 610 production workers in Illinois and Iowa, with cuts at plants in East Moline, Davenport, and Dubuque. The layoffs, effective from Aug. 30, are attributed to decreased demand for the company's products. Workers will receive financial support and benefits, but uncertainty and criticism of the decision linger among employees. The company's decision to move manufacturing to Mexico and ongoing layoffs reflect a shift in its business model to address rising costs and improve efficiency. With a long history dating back to 1837, John Deere has seen previous waves of layoffs in recent months. Lower crop prices and declining farm income are contributing to challenges in the agricultural equipment industry. As the company's CEO puts his property up for sale, John Deere's financial outlook remains uncertain, with a lowered profit forecast and decreased sales of large agricultural equipment.